State Bank of India rose 3.67% to Rs 206.35 at 13:53 IST on BSE on reports the bank is considering a proposal to hive off its stressed-loan portfolio into a separate company.
Meanwhile, the S&P BSE Sensex was up 280.87 points or 1.05% at 27,058.32.
On BSE, so far 35.30 lakh shares were traded in the counter as against average daily volume of 37.90 lakh shares in the past two weeks. The stock hit a high of Rs 206.50 and a low of Rs 200 so far during the day. The stock had hit a 52-week high of Rs 291.85 on 5 August 2015. The stock had hit a 52-week low of Rs 148.30 on 12 February 2016.
If non-performing assets (NPAs) are transferred to a separate company, it will help State Bank of India (SBI) concentrate on core banking services. Meanwhile, media reports also suggested that some sovereign wealth funds and private equity players have shown interest in acquiring stake in the so-called bad bank proposed by SBI.
SBI's net profit fell 66.23% to Rs 1263.81 crore on 10.10% increase in total income to Rs 53526.97 crore in Q4 March 2016 over Q4 March 2015.
SBI is India's biggest bank in terms of branch network. The Government of India currently holds 60.18% stake in SBI (as per the shareholding pattern as on 31 March 2016).
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